That is not IP theft, that's private use. If (s)he tries to sell those coloring books, that's then theft. You're free to do anything you want with IP in privacy, it's only when selling or exhibiting to the public IP law is triggered. Knock yourself out with protected IP in private.
But it's true. You can do anything you want with private IP in private. It is the dissemination and distribution of IP that not yours that is the issue.
It is not piracy to acquire private IP legally (someone has to get it in the first place) and then you can to anything you want with it in your own privacy. It becomes an issue when your activities with that private IP is no longer private. think it through, I really don't think you have. BTW, I'm CTO of a law firm.
Okay, so I have looked this up, again. I was an expert in this area for work purposes around the 2000-'10. Checking the law now, the definition of fair use in the US has changed, been modified to extend "IP stored in digital files" as protected even in private. However, it is pointed out that there is no means of detecting such private uses, and any actions enabling the detection of this private use are no longer private and fall right into the previous IP law.
